Analyst Says Caterpillar Sales on Track to Meet Forecast

Date: June 13, 2019
Source: - Carl Surran, SA News Editor

Caterpillar's (CAT +0.4%) retail sales growth for the three-month rolling period ended in May slightly moderated from the period ending in April but the increase is in line with expectations when considering difficult comparisons, says Buckingham analyst Neil Frohnapple.

The "slight order rate deceleration was expected and supports Caterpillar's outlook for a modest total sales increase in 2019," the analyst writes.

Construction Industries growth rates moderated slightly for the rolling period, but the slight acceleration in Resource Industries retail sales is an incremental positive, Frohnapple writes.

While Buckingham models "a more moderate" total Y/Y manufacturing sales growth of 3.1% in Q2, "overall, there were no major surprises from these results relative to our expectations."

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